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Banking Policy Review: Did Dodd–Frank End ‘Too Big to Fail’?

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  • Ryan Johnston

Abstract

Postcrisis bank reform was intended to end market perceptions that if a big bank fails, the government will have no choice but to bail it out. Ryan Johnston examines the evidence from recent studies.

Suggested Citation

  • Ryan Johnston, 2016. "Banking Policy Review: Did Dodd–Frank End ‘Too Big to Fail’?," Banking Policy Review, Federal Reserve Bank of Philadelphia, issue Q4, pages 16-20.
    • Handle: RePEc:fip:fedpbp:00002
    as

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    References listed on IDEAS

    as
    1. Hughes, Joseph P. & Mester, Loretta J., 2013. "Who said large banks don’t experience scale economies? Evidence from a risk-return-driven cost function," Journal of Financial Intermediation, Elsevier, vol. 22(4), pages 559-585.
    2. Javed I. Ahmed & Christopher Anderson & Rebecca Zarutskie, 2015. "Are the Borrowing Costs of Large Financial Firms Unusual?," Finance and Economics Discussion Series 2015-24, Board of Governors of the Federal Reserve System (U.S.).
    3. O'Hara, Maureen & Shaw, Wayne, 1990. "Deposit Insurance and Wealth Effects: The Value of Being "Too Big to Fail."," Journal of Finance, American Finance Association, vol. 45(5), pages 1587-1600, December.
    4. Gandhi, Priyank & Lustig, Hanno & Plazzi, Alberto, 2016. "Equity Is Cheap for Large Financial Institutions: The International Evidence," Research Papers 3454, Stanford University, Graduate School of Business.
    5. Philip E. Strahan, 2013. "Too Big to Fail: Causes, Consequences, and Policy Responses," Annual Review of Financial Economics, Annual Reviews, vol. 5(1), pages 43-61, November.
    6. Acharya, Viral & Anginer, Deniz & Warburton, Joe, 2016. "The End of Market Discipline? Investor Expectations of Implicit Government Guarantees," MPRA Paper 79700, University Library of Munich, Germany.
    7. Bassett, William F., 2016. "Using Insured Deposits to Refine Estimates of the Large Bank Funding Advantage," Journal of Law, Finance, and Accounting, now publishers, vol. 1(1), pages 41-91, April.
    Full references (including those not matched with items on IDEAS)

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    Keywords

    bank crises; government bailouts;

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